Test Bank For Accounting Information Systems, 15th Edition by Romney, Steinbart, Summers, Wood all chapters.
Test Bank For Accounting Information Systems, 15th Edition by Romney, Steinbart, Summers, Wood all chapters.
Test Bank For Accounting Information Systems, 15th Edition by Romney, Steinbart...
[TEST BANK]
ACCOUNTING
INFORMATION SYSTEMS,
15THEDITION BY ROMNEY,
STEINBART, SUMMERS,
WOOD
, Chapter 1 Accounting Information Systems: An Overview ij i j ij ij ij ij
1.1 Distinguish data from information, discussthe characteristics of useful information, ij ij ij ij ij ij ij ij ij
andexplain how to determine the value of information.
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1) Which of the following statements below shows the contrast between data
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andinformation?
ij ij
A) Data is the output of an AIS. ij ij ij ij ij ij
B) Information is the primary output of an AIS. ij ij ij ij ij ij ij
C) Data is more useful in decision making than information.
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D) Data and information are the same. ij ij ij ij ij
Answer: B i j
2) Information is best described as ij ij ij ij
A) raw facts about transactions. ij ij ij
B) data that has been organized and processed so that it is meaningful to the user.
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C) facts that are useful when processed in a timely manner.
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D) the same thing as data. ij ij ij ij
Answer: B i j
3) The value of information can best be determined by
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A) its usefulness to decision makers.
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B) its relevance to decision makers.
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C) the benefits associated with obtaining the information minus the cost of producing it.
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D) the extent to which it optimizes the value chain.
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Answer: C i j
4) An accounting information system (AIS) processes
ij ij ij ij ij to provide users with
ij ij ij
ij .
A) data; information ij
B) data; transactions ij
C) information;data ij
D) data;
benefitsAnswer:
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i j A
5) ij information reduces uncertainty, improves decision makers' ability to ij ij ij ij ij ij ij
makepredictions, or confirms expectations.
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A) Timely
1
,B) Reliable
C) Relevant
D) Complete ij
Answer: C i j
6) Information that is free from error or bias and accurately represents the events or activitiesof
ij ij ij ij ij ij ij ij ij ij ij ij ij ij ij
the organization is
ij ij ij
A) relevant.
B) reliable /Faithful Representation.
ij ij ij
C) verifiable.
D) timely.
Answer: B i j
7) Information that does not omit important aspects of the underlying events or ij ij ij ij ij ij ij ij ij ij ij
activitiesthat it measures is
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A) complete.
B) accessible.
C) relevant.
D) timely.
Answer: A i j
8) Information is ij when two knowledgeable people independently produce
ij ij ij ij ij
thesame information.
ij ij ij
A) verifiable
B) relevant
C) reliable
D) complete ij
Answer: A i j
9) Data must be converted into information to be considered useful and meaningful for
ij ij ij ij ij ij ij ij ij ij ij ij
decision making. There are six characteristics that make information both useful and
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meaningful. If information is free from error or bias and accurately represents the events
ij ij ij ij ij ij ij ij ij ij ij ij ij ij
oractivities of the organization, it is representative of the characteristic of
ij ij ij ij ij ij ij ij ij ij ij ij
A) relevancy.
B) timeliness.
C) understandability.
D) reliability.
2
, Answer: D i j
10) Inventory information is provided in real time by a firm's accounting information ij ij ij ij ij ij ij ij ij ij ij
system.The accuracy of this information is questionable, however, since the production
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manager often reports stock outs of components that the system indicates are in stock.
ij ij ij ij ij ij ij ij ij ij ij ij ij ij
Which of the following characteristics of useful information is absent in the situation
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described above?
ij ij
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible ij
Answer: B i j
11) Cheryl Metrejean has been the controller of Downtown Tires for 25 years. Ownership of
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the firm recently changed hands and the new owners are conducting an audit of the
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financialrecords. The audit has been unable to reproduce financial reports that were prepared
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by Ms. Metrejean. While there is no evidence of wrongdoing, the auditors are concerned that
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the discrepancies might contribute to poor decisions. Which of the following characteristics
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of useful information is absent in the situation described above?
ij ij ij ij ij ij ij ij ij ij
A) relevant
B) reliable
C) complete
D) timely
E) understandable
F) verifiable
G) accessible ij
Answer: F i j
12) In 2003, Singh Manufacturing implemented a Web-based information system that allows
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all employees to access mission-critical information. The intention was to increase
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productionefficiency. Unfortunately, it had the opposite effect, as deliveries fell behind
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schedule and costs increased. Shaman Gupta, the director of information technology services,
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asked AshleeWells to come in and talk with him about the system. Ashlee is a long-time
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employee of Singh, and her opinion is valued by her peers and by her supervisor.
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"So Ashlee, how's it going down there in the shop?"
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"Not so good, Shaman. Used to be we got a weekly pick list so we knew how to plan production.
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Now, we got that computer system. Most of us can't figure out how to use it to doour jobs. Is there
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some way to print out a pick list?"
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3
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